The Russian Ministry of Finance recently published Letter No. 03-07-03/47566, which clarifies the value added tax (VAT) implications of the transfer of assets from a parent company to a subsidiary as a contribution to capital. According to the letter, any VAT claimed as a deduction in relation to the transferred assets must be recovered (repaid to the government). The amount recovered is the amount that had been accepted as a deduction, or in respect of fixed assets and intangible assets, the…